In the seasonally-adjusted series, the Gross Domestic Product (GDP ) grew 0.9% in the second quarter of 2023 over the previous quarter. The GDP grew 3.4% compared with the same quarter of 2022. The cumulative GDP in the four quarters ending in June 2023 rose 3.2% in relation to the four immediately previous quarters.  The cumulative rise in the semester was of 3.7%.

At current values, the GDP reached R$2.651 trillion in the second quarter of 2023,

being R$2.315 trillion relative to Value Added (VA) at basic prices and R$335.7 billion, to Product Taxes Less Subsidies .

In the second quarter of 2023, the investment rate was 17.2% of the GDP, below that reported in the same period of 2022 (18.3%). The Savings rate changed from 18.4% in the second quarter of 2022 to 16.9% in 2023.

GDP rises 0.9% in relation to immediately previous quarter

In the seasonally-adjusted series, the GDP grew 0.9% over the previous quarter. Industry registered the highest growth (0.9%), followed by Services (0.6%). On the other hand, Agriculture retreated 0.9%.

The growth in Industry was due to the positive performances of 1.8% in Mining and quarrying industries, of 0.7% in Construction, of 0.4% in the activity of Electricity and gas, water, sewerage and waste management and of 0.3% in Manufacturing industries.

In Services, the positive figures were: Financial activities, insurance and related services (1.3%), Other services activities (1.3%), Transportation, storage and mailing (0.9%), Information and communication (0.7%), Real estate activities (0.5%), Administration, defense, public health and education, and social security (0.4%) and Trade (0.1%).

Under the point of view of expenditure, Gross Fixed Capital Formation (-3.6%) dropped, Household Consumption Expenditure (0.0%) remained stable and Government Consumption Expenditure (0.7%) grew in relation to the immediately previous quarter.

In the foreign sector, Exports of Goods and Services rose 2.9%, whereas Imports of Goods and Services increased 4.5% in relation to the first quarter of 2023.

GDP grows 3.4% against Q2 2022

When compared with the same period last year, the GDP increased 3.4% in the second quarter of 2023. The Value Added at basic prices recorded a positive change of 3.4% and Product Taxes Net of Subsidies advanced 3.3%.

Agriculture grew 17.0% over the same period a year ago. That result can be mainly explained by the positive performance of some agricultural products with a relevant harvest in the second quarter, like soybeans (24.5%), corn (13.7%), cotton (10.2%) and coffee (5.3%).

Industry grew 1.5%, in which Mining and quarrying industries recorded the best result (8.8%), due to the increase in the extraction of petroleum and of ferrous minerals. The activity of Electricity and gas, water, sewerage and waste management grew 4.8%, influenced by the residential consumption of energy and by the improvement in the tariff flags. Construction, in turn, changed 0.3%. The activity of Manufacturing industries reported the second drop in a row (-1.7%). Such result was due to the retreat in the manufacture of chemicals, machinery and equipment, wood products and electrical appliances.

Services advanced 2.3% in the same comparison. The best result was of Financial activities, insurance and related services (6.9%), highlighted by insurance, especially car insurance, life insurance, financial risk insurance and real estate insurance. The other activities grew as well: Information and communication (3.8%), Transportation, storage and mailing (3.4%), Real estate activities (2.8%), Other services activities (2.4%), Administration, defense, public health and education, and social security (1.6%) and Trade (0.1%).

Household Consumption Expenditure increased 3.0% in the second quarter. The positive result was influenced by the downturn of inflation, by adjustments in the cash benefit programs, by the improvement in the labor market and by the increase in credit, in real terms, to natural persons in relation to the second quarter of 2022.

Gross Fixed Capital Formation retreated 2.6% in the second quarter of 2023. This drop was mainly explained by the retraction in the production of capital goods, which surpassed the growth of imports. Government Consumption Expenditure rose 2.9% in relation to the second quarter of 2022.

In the foreign sector, Exports of Goods and Services advanced 12.1%, whereas Imports of Goods and Services expanded 2.1% in the second quarter of 2023. Among the exports, the expansion was mainly explained by agricultural products, mining and quarrying, and food products On the other hand, imports grew mainly due to the acquisition of machinery and equipment, petroleum and gas extraction and electrical machinery and equipment.

GDP grows 3.2% in the cumulative index in four quarters

The cumulative GDP in the four quarters ending in June 2023 rose 3.2% in relation to the four immediately previous quarters.  This rate resulted from the advances of 3.2% in the Value Added at basic prices and of 3.0% in the Product Taxes Net of Subsidies. The result of Value Added in this type of comparison reflected the performance of the following segments: Agriculture (11.2%), Industry (2.2%) and Services (3.3%).

Among the industrial activities, Electricity and gas, water, sewerage and waste management (8.1%), Mining and Quarrying Industries (3.5%) and Construction (2.9%) expanded. Manufacturing industries (0.0%) remained stable.

In Services, all the activities reported positive figures: Other services activities (6.2%), Transportation, storage and mailing (5.6%), Information and communication (5.6%), Financial activities, insurance and related services (3.9%), Real estate activities (3.0%), Trade (1.5%) and Administration, defense, public health and education, and social security (0.8%).

In the analysis of the expenditure, Gross Fixed Capital Formation (1.7%) grew for the tenth quarter in a row. Household Consumption Expenditure and Government Consumption Expenditure registered positive changes of 3.9% and 1.4%, respectively. In the foreign sector, Exports of goods and services rose 9.8%, whereas Imports of goods and services advanced 4.9%.

GDP grows 3.7% in the first semester this year

The GDP grew 3.7% in the first semester of 2023 in relation to the same period of 2022. In this basis for comparison, Agriculture (17.9%), Industry (1.7%) and Services (2.6%) performed positively.

Among the industrial activities, Mining and Quarrying Industries (8.2%), Electricity and gas, water, sewerage and waste management (5.6%) and Construction (0.9%) grew, whereas Manufacturing industries (-1.3%) fell. In Services, Financial activities, insurance and related services (5.8%), Information and communication (5.3%), Transportation, storage and mailing (4.2%), Other services activities (3.3%), Real estate activities (2.8%), Administration, defense, public health and education, and social security (1.0%) and Trade (0.9%) expanded.

In the domestic demand approach, considering the comparison by semester, there was an increase of 3.2% in the Household consumption expenditure and of 2.0% in Government consumption expenditure. Gross Fixed Capital Formation had a drop of 0.9%. In the foreign sector, Exports of goods and services grew 9.7% and Imports of goods and services, 2.1%.

Investment rate was 17.2% in Q2

In the second quarter of 2023, the investment rate was 17.2% of the GDP, remaining below that reported in the same period last year (18.3%). The Savings rate changed from 18.4% in the second quarter of 2022 to 16.9% in 2023.